Texas · Chapter 23 of 44
Financing Concepts and Components
Methods of financing including conventional and non-conventional loans, seller financing (contract for deed), lien theory vs. title theory, sources of financing, types of loans, and mortgage clauses.
25-minute read · Built for the TREC Sales Agent Exam
conventional loannon-conventional loanseller financingcontract for deedlien theorytitle theorydeed of trustprimary mortgage marketsecondary mortgage marketFannie MaeFreddie MacGinnie Maefixed-rateARMballoonacceleration clausedue-on-sale clause
Methods of Financing
Common financing methods: (1) Conventional mortgage (not FHA/VA/USDA). (2) FHA-insured loans. (3) VA-guaranteed loans. (4) USDA Rural Development loans. (5) Seller financing (contract for deed, wraparound, owner-carried second). (6) Hard money loans (asset-based, high rates).
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